2012 OLYMPICS

The credit crunch could have a silver lining for the hard-pressed organisers of the London 2012 Olympics who can now scale back their grand designs with the full blessing of the public and the IOC.

The slump in property prices, which could damage the chances of recouping money from the athletes' village after the Games, has also resulted in the number of post-Olympics apartments being reduced from 4,200 to 3,000. The economic downturn could allow the government to play "hard-ball" with the IOC over the scale of the Games and the contractors over price.

Photograph: The Olympic and Paralympic Flags are raised outside London City Hall on September 26, 2008 in London, England/Ian Walton/Getty Images